December 2018
Volume 17 • Issue 12
$1.9M land sale pending for packaging plant BY ROBIN WOJTANIK
for Tri-Cities Area Journal of Business
Entrepreneur
Just Joel’s cooks up success in downtown Kennewick Page 11
Real Estate & Construction
Final building under construction in Grandridge Business Park Page 21
Year in Review
Tri-Cities Area Journal of Business’ top web stories of 2018 Page 37
he Said It
“This is my attempt to make amends to the community I spent 15 years taking from.” - Joel Watson, owner, Just Joel’s Page 14
A Midwest paper processing giant is preparing to build a large manufacturing plant in the Horn Rapids area of Richland, bringing with it about 150 family-wage jobs. Packaging Corporation of America, based in Illinois, is set to close on 42 acres in the Horn Rapids Industrial Park. The sale of the city-owned 3003 Kingsgate Way property is not complete, but the estimated purchase price is $45,000 an acre, or an estimated $1.9 million, which meets the pricing established in 2013 for the city-owned property. The Richland City Council approved the sale earlier this fall. Paperwork filed with the city of Richland said the company plans to build a 400,000-square-foot to 450,000-square-foot manufacturing facility. The company said it expects to open the facility at the start of 2020. As part of the sale agreement, the city agreed to move an irrigation line and build Battelle Boulevard along the north end of the property. A four percent finder’s fee due to CBRE Inc. of Seattle is also part of the agreement. PCA, one of the nation’s largest producers of packaging products, owns Boise Paper, which operates the paper mill in Wallula. PCA recently made a $150 million investment into the Walla Walla County plant, with a future goal of producing only containerboard, or cardboard. The Port of Pasco signed a lease and dockage agreement with PCA this past summer so the company could begin barging sawdust to the Big Pasco Industrial Park en route to the Wallula plant. Richland officials expect corrugated cardboard also will be produced in Horn Rapids. Jobs at the PCA plant in Richland are expected to average $25 an hour. Benton County’s median hourly wage in 2017 was $23.94 an hour and in Franklin County’s it was $17.83 an hour, according to the state Employment Security Department.
uPACKAGING, Page 4
Fifth-grader Jose Robles shakes hands with Superintendent Dave Bond of the Kennewick School District during the Amazing Shake contest at Hawthorne Elementary School in Kennewick. In this round, students had 30 seconds to make a good first impression. The seated student is Meshayla Retana. (Courtesy Jason Gradwohl)
Professionals-in-training practice poise under pressure BY KRISTINA LORD
editor@tcjournal.biz
They worked the room like a boss. They extended their hands and gave a firm shake. They smiled and made eye contact as they introduced themselves. They asked thoughtful questions — and listened to the responses. When another person asked, “Do you mind if I join your conversation?” They replied, “Not at all. We were just talking about …” and then welcomed the newcomer into the discussion. These fifth-graders at Hawthorne Elementary School in Kennewick showed
poise, politeness and confidence under pressure as they worked a room full of community business professionals. It was all part of the Amazing Shake, a nationwide challenge designed to teach students manners, discipline, respect and professional conduct. They learned how to give a proper handshake, to “work a room” with small talk, and to think on their feet. Joe Peterson, owner and principal at Joe Peterson Insurance Agency in Kennewick, volunteered to judge. He said he was impressed, with the students outperforming his expectations in every way. uPROFESSIONALS, Page 19
New owners of Kennewick apartments to invest $19.8M to overhaul 455 units BY ROBIN WOJTANIK
for Tri-Cities Area Journal of Business
A massive remodel totaling $19.8 million in improvements is underway at the Heatherstone Apartments in Kennewick, where work will continue through late spring 2020. All 38 residential buildings will receive interior and exterior renovations, including new roofs, siding, parking lots, garage space and landscaping. For the individual units, tenants will benefit from an overhaul to kitchens, bathrooms and lighting, increasing energy efficiency and improved overall aesthetics. “The purpose of this was to acquire and substantially rehab the property and preserve it for the long term, extending the
affordability restriction for the next 30 years,” said Bryon Gongaware, managing director of affordable housing for Security Properties Inc., a Seattle-based owner, operator and developer that controls the tax credit partnership, which now owns the property. Gongaware sees the work as a necessary improvement since the 22-yearold complex is starting to show its age. “The property is really starting to wear out,” he said. Walker Construction of Spokane is the general contractor on the project. There is an income restriction for tenants who live at Heatherstone, located at 1114, 1138 and 1212 W. 10th Ave., near Park Middle School in Kennewick. uHEATHERSTONE, Page 45
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